The following is a summary of the NFI Group Inc. (NFYEF) Q3 2024 Earnings Call Transcript:
Financial Performance:
NFI Group reported a significant year-over-year improvement in Q3 2024 financial results with a 375% increase in quarterly adjusted EBITDA and a $161 million improvement on an LTM basis.
Gross margin increased to 12.2%, the highest since Q1 2021.
Despite challenges, new orders increased with 1,050 equivalent units in the quarter, up 8.2% from the previous year.Trailing 12-month book-to-bill ratio stood strong at 115%.
Aftermarket segment delivered $153 million in revenue and $34 million of adjusted EBITDA, up 7% and 8% year-over-year, respectively.
Business Progress:
NFI has delivered more than 4,300 zero-emission vehicle units (ZEBs) since 2015 across 150 cities.
Their infrastructure solutions team has installed over 540 electric bus chargers.
Achieved the highest quarter ever of low-floor cutaway bus deliveries in Q3 2024.
NFI anticipates their $12 billion backlog will continue to grow, driven primarily by North American public transit and coach operations.
Opportunities:
The increased demand for zero-emission buses (ZEBs) and the record backlog presents a significant growth opportunity for NFI.
Anticipated large multiyear orders in Q4 to boost the backlog further.
Positive outlook driven by multibillion-dollar investments in the US, Canada, and the UK to support the transition to low and zero-emission fleets.
Risks:
Production disruptions due to a significant North American seat supplier not meeting delivery timelines, impacting planned deliveries and master production schedule.
The seat supply issue, projected to continue through the remainder of 2024 and possibly into 2025, poses a risk to delivery schedules and operational efficiency.
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